BAKU, Azerbaijan, July 16. The price for the HH (Henry Hub) natural gas in 2023 is expected at $5.8 per mnBtu, while the price for NBP (National Balancing Point) natural gas is projected at $19 per mnBtu, Trend reports from the recent outlook from Fitch Solutions.
Thus, according to the forecast, the expected prices are to decrease, compared to the projected 2022 prices - $5.9 per mnBtu for HH natural gas, and $29.7 per mnBtu for NBP natural gas.
“The specter of European gas rationing rises as the pending Russian shutdown of Nordstream I for maintenance may see flows via the crucial pipeline halted beyond the 10-day planned stoppage. After a brief respite in price gains to start July, UK NBP prices have climbed higher to reach 290 pounds per therm on July 6 from 250 pounds per therm just a week earlier,” Fitch Solutions said.
Meanwhile, according to the report, LNG imports to the UK have increased and the unchanged concerns about the abrupt cessation of imports from Russia are putting pressure on prices as key consumers begin to implement plans to limit consumption in the event of supply cuts.
“A key indicator for prices in the coming winter is the storage levels of natural gas which currently sits at 60 percent of capacity with the November 1 target of 80 percent looking achievable barring significant changes to gas flows from Russia. Extreme temperature events could raise consumption which could also impact storage builds as the summer season progresses,” the report concluded.
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